President Trump Announces Major Advances in Most-Favored-Nation Pricing for Prescription Drugs
Impact Score: 3.2
Timeline: Implementation began May 12, 2025, with phased actions through December 2025
Summary: On December 19, 2025, President Trump announced significant progress in lowering U.S. prescription drug prices by aligning them with the lowest prices paid by other developed nations through Most-Favored-Nation (MFN) pricing. Nine major pharmaceutical companies agreed to substantial drug price reductions for chronic and costly conditions and committed $150 billion to U.S. manufacturing and emergency pharmaceutical reserves. The policy seeks to prevent foreign nations from free riding on American innovation and repatriate foreign revenues. This follows a series of actions since May 2025, including an international pricing agreement with the U.K. The initiative presents challenges and opportunities for healthcare institutions like Vanderbilt University Medical Center, affecting pharmaceutical purchasing, research funding, and health policy study.
Key Actions: Vanderbilt should reassess drug procurement strategies, pursue related research grants, engage in health policy analysis, and leverage educational opportunities on MFN pricing impacts.
View Full Report
